Fresh Tomato continues uptrend in France

Long term increases in tomato production levels in France are expected to remain intact during the coming season, reflecting the fact most of the country's crop is grown in greenhouses.

This year harvest of fresh tomatoes could end up at almost 632,000 metric tons (MT), even though deliveries to the country's processing industry continues to fall, reports the U.S. agricultural attache for the country.

Deliveries this year may only total 200,000 MT, down from 222,758 MT last year and 248,950 MT in 2003. The decline in supply of French raw material for processing has been accelerated by the purchase of the leading French tomato processing plant by the Chinese company Chalkis. Another impact of such Chinese industrial investment in France is growing imports of tomato paste from China.

France is Minor Processed Tomato Player

In Europe, France is a minor producer of processed tomato products. The quota for France set by the EU under the Common Market Organization (CMO) for fruits and vegetables is 402,000 MT of fresh tomatoes.

In April 2004, 55% of France's largest tomato processor, "Conserves de Provence" producer of the brand "Le Cabanon," was bought by the Chinese tomato company Chalkis.

Chalkis is a subsidiary of the leading Chinese food company Xinjiang, and the world's second largest tomato processing company. The French cooperative "Le Cabanon" which previously owned 100% of "Conserves de Provence" is keeping the remaining 45% of the business.

The agreement signed between Chalkis and Le Cabanon stipulates that Conserves de France will import, process and pack Chinese tomatoes (mainly tomato paste) to sell on the European market. The following trade matrices illustrate the increase in French imports of tomato paste from China in 2003-04 and 2004-05.

While Chalkis initially indicated that it would purchase 60,000 MT of fresh tomatoes produced in France annually, only 25,000 MT are contracted for 2005. This drop from the major processing tomato company in France explains the 20% decline in total deliveries of fresh tomatoes for processing.

Source